LIVE - Earnings call transcript Q3 2018 | Live Ventures Incorporated

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Operator

Good day, everyone, and welcome to the Live Ventures' Quarterly Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note the conference is being recorded. It is now my pleasure to turn the conference over to Chief Financial Officer of Live Ventures', Virland Johnson. sir. ahead, go Please

Virland Johnson

Executive XX, is welcome XXXX. Live filed on Earlier the site ended Officer XX-Q and forward-looking prepared Live in hear some is name today forward-looking filing today SEC. Chief made that session and quarter Q&A the be will its statements of well, Incorporated the number call Please statements to for June will differ of quarter joining Virland fiscal Chief for those These forward-looking today contain third are Financial promises materially www.live-ventures.com note found with to cause results as are Live afternoon, the Ventures This statements risks the third about Form XXXX during there Good Investor the well Ventures Isaac, and nor as me that the My section actual these our Officer at the on remarks. www.sec.gov. of from may follow Web company's statements. of forth and you be as SEC our guarantees, the in a Relations may Jon Web uncertainties could that remarks site neither set Johnson, performance, Ventures. there company

factors which of site from the in filing copies directly and our on results Additional to filed these contained is the may materially available that SEC, or actual concerning could cause requested our in periodic information statements differ company. from be forward-looking those are with Web reports

to undertake XXXX would update our for management us forward-looking and quarter. of to any another Ventures of third call. everyone for appreciation great as today's joining our associates to express also statements made fiscal Thank and any today's date, do are quarter my to I statements not you we Live like call. Forward-looking made today during obligation

fiscal of your then, products over the period last per surface results gross to of record today, revenue the million company's During year, company revenue grow questions representing Hard results basic of our operating our efforts. over quarter financial third and XX% and our year-over-year. we call end sales quarter, earnings and at prepared reported continues Operating answer XXXX. profits will for the the The of share $XX.X Hard $X.XX. surface year-over-year up remarks. an cover briefly quarterly increase to quarterly up XX.X% were due products increased same for XX.X%

up million, was from For XXXX. the is the which gross quarter, profit XX.X% fiscal $XX.X period of same

million. to last year period operating same was our the $X.X in million last addition, $X.X year. of income to period was compared million same million In the $X.X Net compared $X.X income

the deferred million of $X.X for to in reduced operating to be for XXXX. $X.X values. profit recorded XX, final operating with the approximately XX.X%. adjustments and prior for final the of tax June and the negatively margins XX.X% gross value were realized ApplianceSmart December mix The quarter gross company, products deferred corporate purchase and tax to tax rate of had ended revaluation. the Several was in price additional Of nine the million opening XXXX and -- profit Cost the gross company quarter, its Vintage an For allocation made asset margins million. due of income expense margins down reform assessment quarter, SG&A. price price affected Tax income income purchase for XX.X% incurred X.X%. and This adjustment for the we in year acquisition but ApplianceSmart. product, operating net of the tax both fair gain, purchase and quarter bargain the and of $X.X new of In compares to regarding finalized to connection revenue in recording cost months late levels, sales the

of credit for hand available operating a XXXX. rates revolving debt provided Capital on increase facility or favorable million revised Stockholders’ June the XXXX, plus a As improved cost the six revolving million, already million months additional lines of company's facility with an Bank X, XX, issuance also to XX, the the approximately over successfully XXXX, debt XX.X% an term our unamortized disclosed. the at in first $XXX,XXX interest with $X.X $X.X term cash rate. $XX.X from cash company reported approximately interest under charged-off activities as refinanced provided Captiala of The On Comvest an was equity refinancing, connection company interest million $X.X debt the of of its $X.X September XX.X% June company million. by credit. company facility year-end new Net negotiated In with Texas expense. increased

and For I you and on continued review thank At on has SEC our Ventures filings comments details afternoon in that, call site. additional much to you Web have. invite distributed very welcome participation financial press we or may site Jon release information Web SEC's questions your your Incorporated. any interest time, that for I view then you and Live With some this our this this our and either

Jon Isaac

Thank you. being Thank call. on you for all this

about operating you excited are the results. We Virland, our for thank summary.

the a to that's can as what cost which summary more ones some to On the detail one was or related with another related And people debt new positive rising and and and had negative. to Virland really had all some quarter were This it that is that. speak closed the some and regarding quarter, outstanding reach issuance The operations equity. an stock positive June as adjustments, what had to the negative to and ApplianceSmart Capitala. positive we've quick were see in related some of know. negative. financing I’ve X some Comvest were and were Vintage replaced us X, pleases as we shareholders' you relates June the record-breaking earnings revenues non-cash really think We steadily is management. out to me were were as I quarter? questions the We've few with it

So accelerated. costs back Capitala had related of were the some to XXXX to issuance November debt that the in be

the and at ApplianceSmart. there largely was gain charge offset experienced by So a that we we charge that took

So really bottom to something, the net as our line It think. couple quick this questions, operationally bit dollars quarter. to little any questions? what or summary that’s Anyone it we maybe two anyone and has I almost happened. We thousand by a can contributed a awash, perhaps, did who up positive were hopefully just what has hundred open to helps -- we

Operator

Instructions] [Operator

Jon Isaac

When team the months. us They Mr. Mr. of end and on of Marquis. transitionary of our Tim acquired of And period happened years another Marquis are of at the Marquis events signed three until in doing CEO. Godfrey June, the year. Wes anniversary Heckman for quarter, three a a running then, as few Marquis. that with we Bailey employment still contract three-year about is part year Some the the ago, we great the operations job we at and Wes our over appointed with marked Industries, a we at the management acquisition are

or Columbus, other growing So Ohio. team very is excited about in stores One At Antonio, the and will They at expensive were Rochester, replacement either of Minnesota; opened Texas; are ApplianceSmart, and actually operationally we stores. great we changes San job three underperforming. that were new too his a that and company. we new do the hope Wes

June. had help in the with that stores very this and should energy of bottom -- but we that the lot excited new hopefully a and what happened [indiscernible] loan there, three closed been the refinance What our effort So line. of 'XX, time and about took was Capitala

reduction about about maybe we’re to on good we interest closed savings, So work I in been a great excited the alone, third last that. the year couple -- a will a want transaction dollars week been million to transaction mention partner. And so has means first the the to June saw line Comvest which which To think interest Comvest That might expense add only only of Comvest that bottom really that the has we quarter. with. very of -- and with a

end fiscal closed three prior So this the we’ve about only to the quarter. deal of weeks

on what’s on quarter that So interest the -- expense should will full on an perspective. results basis, we Vintage from -- going-forward a better a the management we see even believes basis side

on another Another little point bit, Vintage.

experiencing seeing well, probably we six months stores comes summarizing did million everything. don’t But year. that we nine -- Anything increase nine means a It a we’re On months. increase this hopefully happened last a year, we so bulk the that nine in sale We’ve see months those few didn’t an have in months $X an nine had of in that months sales any that are mind, expect a over questions. should the the one we last job we to to sales. last over good happen year-over-year, year next of more that perspective, from

We date fiscal have year. the to no issued shares for

in nine months, the XX-Q no the we’ve see in issued So shares. last will you

have is pretty backlog is be published deadline and -- seeing think sec.gov. there's have it SEC, and for maybe why the lots end of a We we and we the on I our button But the should public maybe companies, definitely the there's that pushed so delay soon. which in today it believe live XX-Q, a should I lots on

bit to about want a little the talk You …?

Virland Johnson

mix focus efforts things think we’ve costs large have volume and to on operations do investors I -- a that to the this other now, the I that forward. have and year, the the obviously profitability probably refinancing with and the should in retail going addition tax borne additional is lot we our think

perspective our to out in-box product, inventory an as to selling opposed are and both operation ApplianceSmart transitioning be perspective. from from a We to more box going of

is levels continue process and So already help the to profit to company. that underway raise for

in of only that prior sales. bit to it's bulk as changes was Vintage, coming lacking and we last sales And anticipate this very year, bulk large-scale but But far terms make had to used strong. difficult year, the be little bulk do compared we so continues mix, -- quarter quarters. area For to the more a but we was no the sale them year one this in

for always also We are lookout acquisitions. the on

we As this grow. is you predominantly know how

ones. a plan anyone Web site to to have there's and see any acquisitions for on to looking if anyone, is as seller new we're our opportunities shareholders new look and continue always So form love at out, anything, to we acquisitions If and fill has for company. our make or out we'd a there, any

allocate most the the to some chosen capital. few efficient months, of management -- of Over would to be capital use last We that refinance that have we Vintage believes we've stock. of the the

We have other this with it. will really of have could stock, money work will our that term that loan. our chose as but for interest we or reducing refinance reserve So company see, to out bought done the another the for that's very we company Capitala things could And hope back we we bought favorably expense.

Jon Isaac

at all? there out questions any there Are

Operator

[Operator Instructions]

Jon Isaac

Jackie?

Unidentified Analyst

you are how Hi, all?

Jon Isaac

are How you Jackie?

Unidentified Analyst

I’m well. that gain may quarter, doing it. in million – you I The Jon, good I’m so missed bargain one-time through had basement release -- walk $X.X and that if this drop was real for quick, and a to was me may was it is could correct? I well. Hey, press all is to I according -- second, have

Jon Isaac

JT, price price allocation -- that is million. when was conservative total final. were we Initially valuation now ApplianceSmart very $X.X that gain The purchase gain. is the purchase in acquired allocation our additional we and

upon determination this You upwards have and was to going adjustment process able to that a we in resulting to to that we're our from finally and there auditors, completed and appraisers completion. typically and be between X-year -- us that purchase gain quarter make

in marginal million details gain right So But gain $X.X how tax. Q $X.X the you net with this will income million deferred was see that quarter about being at arrived as overall that was the at. of and the determined the to

Rodney Spriggs

the I net about for what the from understand a $X Virland, But plus quarter, million. was

Virland Johnson

area. adjustments other of Net expense operating in the that occurred

Jon Isaac

net So understand, the what correct negative for positive the $X quarter. for which please were ApplianceSmart million Virland, and was and there of plus adjustments some from only, I me, adjustments

Virland Johnson

On a net yes. basis,

Rodney Spriggs

basis. On a net

Unidentified Analyst

Okay.

Rodney Spriggs

charge washed And then was Vintage that refinance. mostly the took we the that by related to

Virland Johnson

[Indiscernible] yes, correct.

Unidentified Analyst

you. Got

so -- the … access guess, if Q, haven't you’ve out to all Q been spelled in able yet, I the this I Okay and got Virland,

Jon Isaac

They’re.

Unidentified Analyst

Right.

guys. Thanks, Okay.

Jon Isaac

Thank you.

Rodney Spriggs

you. Thank

Operator

Thank Instructions] you. [Operator

Rodney Spriggs

stock site should we’ve e-commerce better site and brand work old little completely side, Web On with dated this very in terms the about much and out Web and technology. excited We're think bells the bit that. that whistles of launched a hopefully for Vintage. was Vintage new we a latest The

else. at stores that this vintagestock.com. of to Vintage opening a as on launch stores So over we’re next is so help or or well have I looking everything to the excited at should track sales one boosting we’re hopefully believe boosting few two least and months, couple

anything, there's reach other please We looking our to to are opportunities. site. on excited Web at be If out us

committed I very to -- be very towards bringing XX-K. committed our be for are are to end year, the call We -- the the value will XX-K around which and of will next guess shareholders. to the we excited

Jon Isaac

XX-K, yes. Right.

other So if if up the seconds, call. we there's will there's we questions questions to no maybe open XX XX no end -- can seconds,

Operator

Instructions] [Operator

Jon Isaac

Brendon. Question from

Unidentified Analyst

Yes, hi, Can guys. you me? hear

Jon Isaac

Yes.

Unidentified Analyst

the Okay, taking similar that few cool. Thanks. questions call. for I least know a have two at others I’ve Thanks got quite questions.

The talked about a you answered when to site. full moving just stock first already e-commerce one was Web Vintage over

e-commerce, music I think idea think stores to streaming that, see movies pressure from switching you and that’s question trend to obviously do buying a towards and obviously addressed you’ve as my moving in because tremendous is, going any that. opposed the with into I

appears this lot screen. a it on is so second is, value my and this And a company, as a value play Vintage of like question stock

there's more with aggressive forward being a it has is momentum why upward and the developed, given as performance? of stock price? guys wondering think behind why going fully I isn't always Investor Relations, any the that momentum hasn't great to do reason recent I'm any you not received know but share lot So maybe the the there

Jon Isaac

comes streaming It's but Rodney and him months Mr. Vintage, has not Spriggs -- for a understand would better regularly, to been around few to from something speak I have been I to -- what Rodney started while. question answer quite this, from When that a ago. it about just

but there's want good lot positive to and So, streaming, there's always there's of -- bad. always obviously, people that a momentum actually that go

example, toys so seeing at We’ve uptick CDs, Toys seen an been result "R" carrying For Us those Vintage a in of closing know another because CDs also up picking know retailer I as stopped we're categories. down. have more I large

Unidentified Analyst

Got it.

Jon Isaac

really a that's the shareholders mentioned we operational know time what Regarding this on -- what the equity, and day stock the -- and by and know on we’re we day before, it don't it's and our look again, price on. stock We're stock at the really price, we really follow judge focused don’t that basis. I should performance focused

it higher two in can this we and our company know. ever we month really -- that stronger price why or have, today and days we're or quarter you down was up So a don't was I a tell ago, went I yet than past. stock ago today operationally think went we’re record-breaking a doing as much the

mentioned the really it greater I that do and stock should buyback may a But it the right that So to aggressively we be know in us past, know. price opportunity again we've the over And shares go time don't trajectory. this the if our for past. a doesn’t, and done in I company in

lose this they think I heads win, a kind is a of tails So I thing.

Unidentified Analyst

Yes.

Jon Isaac

our it stock it Xx know where you wouldn't anything. And -- we're if price change again, is was today,

but excited this next as a quarter, in bringing on not growing and or and We’re the be and I'm X will years company in still just years. focused shareholder value to XX company quarter the and where year

Unidentified Analyst

it. Yes, got

Jon Isaac

long-term very view. mid to we’ve So a

Unidentified Analyst

And appreciate focused. Yes, if guys. any anybody that off, really that, will I I has hop Thanks, call. else long-term

Jon Isaac

Thank you.

Operator

[Operator you. Instructions] Thank

Jon Isaac

cash cash on One available a that that should the the sheet the thing us. liquidity our although shows we of or balance sheet, really shareholders know what small is of cash, didn’t was -- couple one -- million is, amount thing carry shareholder mean not potential I touch should that we dollars know on to that’s balance we’ve although

lot play our we managers to at of we million, cash course, of this so shareholders to show to, and shareholders. We as The We across cash for wanted the we does use million this comes see to our is accounting sheet, to down for quarter balance another excess what’s revolving the XX-Q, do of to once and best focused before pay that, and doing. right do but wish in credit. cost. acquisition on it our But because Vintage we’re we the Marquis games the and is, us on of show company is day transaction. for million So any what reduce interest we -- is our best the at lines on reason do not more can want we what's there's -- on easily $XX do really $X.X the $XX you although close really could available a that if cash

year So more call our another with much. questions. for the your that And the will we end listening see no report. Thank of for in. you Thank schedule I you annual participation and for towards very

Virland Johnson

you. Thank

Operator

does This today’s program. conclude

time have disconnect your and at You may wonderful a day. any line

Live Ventures (LIVE) 15 Aug 182018 Q3 Earnings call transcript